The House of Representatives has urged the Federal Ministry of Finance to suspend the planned increase of import duty on used and new vehicles.

The resolution emanated from a motion moved by Rep. Nathaniel Agunbiade (APC-Osun), which was adopted without debate.

According to Agunbiade, the planned 70 per cent tariff will have a multiplier effect of 250 per cent increase on the value of the affected items, adding that it will definitely lead to higher prices of vehicles.

He noted that although Jan. 2014 had been set for the commencement of the policy, none of the assembly plants the policy sought to protect would have started production in the country.

The legislator stressed that care must be taken not to bring too much pain on Nigerians, adding that the policy might encourage smuggling through the land borders.

The Federal Government had on Nov. 25, announced the planned increase of the import duty on used and new vehicles from the current 20 per cent to 70 per cent.

The Minister of Finance, Dr Ngozi Okonjo-Iweala, recently directed that imported, fully-built unit cars shall now attract 35 per cent duty and 35 per cent levy, totaling 70 per cent charges for both new and fairly-used vehicles.

Meanwhile, the 2014 budget would be presented to the House on Thursday by Okonjo-Iweala.

This is contained in a letter sent to the House and read by the Speaker, Alhaji Aminu Tambuwal, after an executive session.

The presentation of the budget by President Goodluck Jonathan had been postponed twice.



http://www.punchng.com/news/reps-urge-fg-to-suspend-new-tariff-on-used-vehicles/

israel007: They should just scratch it. Policy is too unfriendly.

Shocks me when I read people here say this is good for us now as it would create jobs. 'Tokumbo' car saless generate more jobs. How many people would be selling the small qty of cars they would assemble? How many people would th plants employ? Better still: how mmany illiterates would be employ.

This policy is just not it. May be good but its not coming at the right time

israel007: They should just scratch it. Policy is too unfriendly.

Shocks me when I read people here say this is good for us now as it would create jobs. 'Tokumbo' car saless generate more jobs. How many people would be selling the small qty of cars they would assemble? How many people would th plants employ? Better still: how mmany illiterates would be employ.

This policy is just not it. May be good but its not coming at the right time

Segeggs: Who are those in GEJ's cabinet giving him advice that are injurious to the masses?